BUSINESS STASTICS ASSIGNMENT NO:04

Que1 : 40 people were selected at random in the following order MMFFF FMFFM MFMMM
MFFMM FMFFM MMMF FMFMM FFMMMF. Assuming the population has 50% men and
50% women, is true that the people were selected at random?
Solution: to check, see if the order is random. First we note that there are 20 runs as follows:
MM,FFFF,M FF MM F MMMM FF MM F M FF MMMM FF M F MM FF MMM F

N1 = 22 (No of Males)
N2 =18( No of females)
R = Number of Runs in given sequence= 20
N=40
N(μ ,σ) where

Ho : The given sequence is Random( No set Pattern)

Ha : The given Sequence is NOT Random ( There is a pattern)
μ= 20 .8 Using above Formula

= 9.54
σ= 3.08
α= 0.05
Test Stastics (µ) Z Calc= ( R-µr/ σr )=0.2589
Z critical = 1.9545 Since (µ) < CV
Accept Ho, Reject Ha.
Therefore the given sequence is random
Que 2: This set of data represents test scores at the end of Spring and the beginning of the Fall
semesters. The hypothesis is that the summer break means a significant drop in test scores.

Solution :
H0: No difference in median of the signed differences.
H1: Median of the signed differences is less than zero.
Step 1: Subtract set 2 from set 1 and put the result in the third column.

Step 2: Add a fourth column indicating the sign of the number in column 3.
Step 3: Count the number of positives and negatives.

4 positives,12 negatives. 12 negatives seems like a lot, but we can’t say for sure that it’s
significant (i.e. that it didn’t happen by chance) until we run the sign test.

Step 3: Add up the number of items in your sample and subtract any you had a difference of zero
for (in column 3). The sample size in this question was 17, with one zero, so n = 16.
Step 4: Find the p-
.5 for the probability. The null hypothesis is that there are an equal number of signs (i.e. 50/50).
Therefore, the test is a simple binomial experiment with a .5 chance of the sign being negative
 and .5 of it being positive (assuming the null hypothesis is true) 16 for the number of trials 4 for
the number of successes. “Successes” here is the smaller of either the positive or negative signs
from Step 2.

The p-value is 0.038, which is smaller than the alpha level of 0.05. We can reject the null
hypothesis and say there is a significant difference.

Que3 : A physician is interested in the effect of an anaesthetic on reaction times. Two groups are
compared, one with (A) and one without (B) taking the anaesthetic. Subjects had to react on a
simple visual stimulus. Reaction times are not normally distributed in this experiment, so data is
analysed with the Mann-Whitney U-Test for ordinal scaled measurements.

Group A Group B
Ratings Rank Ratings Rank
135 2 131 1
139 5 138 3.5
142 8 138 3.5
144 11 141 6
158 14 142 8
165 15 142 8
171 17 143 10
178 18 145 12
244 21 156 13
245 22 167 16
256 23 191 19
267 24 230 20
268 25
289 26
Sum 231 120
The observed Z value is greater than the Z-value (5%, two-tailed). The anaesthetic group shows
significantly slower reaction times than the non-anaesthetic group.
Question 4: Below is the data for 3 different samples, use Kruskal Wallis test to test for
differences in mean among 3 samples for α = 0.05
Sample 1 : 100, 65, 102, 86, 80, 89, 98, 96, 91, 101
Sample 2: 84, 103, 126, 62, 92, 97, 95, 90, 94, 76
Sample 3: 90, 99, 57, 106, 88, 91, 88, 102, 77, 90.

Solution:
The null hypothesis is H0: μ1=μ2=μ3 and alternative hypothesis is H1: μ1≠μ2≠μ3

We first find the rank of the items in the samples (considering whole group as one) and then find
the rank sums of each sample.

Sample1 Rank Sample2 Rank Sample3 Rank

100 24 83 7 90 13
65 3 103 28 99 23
102 26.5 12662 30 57 1
86 8 62 2 106 29
80 6 92 17 88 9.5
89 11 97 21 91 15.5
98 22 95 19 88 9.5
96 20 90 13 102 26.5
91 15.5 94 18 77 5
101 25 76 4 90 13
R1 161 159 145

Here
n = 30, ni = 10 for all I, m = 3
Degrees of freedom = m - 1 = 3 - 1 = 2.

Test statistic,
= 0.196

From the x2 distribution with m - 1 degrees of freedom and α level of significance we get critical
value = 5.991. Since H < 5.991, we accept the null hypothesis and we conclude that there is no
difference in the mean among 3 samples.